Stocks in Play - January 6th 2025

TLDR Stocks in Play: Robotics, SEDG, KTOS

Welcome to today's Stocks in Play report. Below are the key stocks to watch, along with brief x-ray and analysis.

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1) SolarEdge Technologies (SEDG) (Rating: B+, Multi-Day)

Industry Group: Solar, Market Cap: $853m,  Float: 56m, Short Interest: 39%, Days to Cover: 4.2, Exchange: NASDAQ

Catalyst: Announced Layoffs and Cost Cutting. SEDG Laying off approximately 400 Staff Globally. Severally beaten down name and sector. VERY high short interest and relatively low float. Stock chart looks poised to break downtrend. Gapping up (along with a lot of other stuff) 10% pre market.

2) Kratos Defense (KTOS) (Rating: B+, Single-Day)

Industry Group: Aerospace & Defence, Market Cap: $4.5b, Float: 126m, Short Interest: 2.4%, Days to Cover: 3.4, Exchange: NASDAQ

Catalyst: Awarded 5 Year OTA Contract for the Multi-Service Advanced Capability Hypersonic Test Bed. Total of contract if all targets met is $1.45b. MACH-TB 2.0 will provide an affordable bridge between hypersonic ground tests and system level flight tests. This will reduce overall hypersonic development risks and time and provide rapid transition of innovative hypersonic technologies to the warfighter. To put in context KTOS in 2023 did $1b in revs so this is a significant deal even over 5 Years.

Honorable Mention to: Robotics - Robotics Stocks are flying high this morning. This sector is slightly less speculative than the recent Quantum and Drone stock run. There are some real companies in Robotics, particularly some medtech companies. That being said they are all flying this morning after many had big breakouts on Friday. I am struggling to find any news of note and many of these stocks are in Day 2 of the B/O. I do see a headline for SERV confirming how much they raised in December through ATM offerings. ARBE - Collaboration with NVDA Good chance these stocks move similar to Quantum/Drone etc. Here is a Watchlist I made in Tradingview.

Market Awareness

COPY & PASTE EVERY MONDAY - Mondays are always my least favorite market days. Stocks in play tend to be harder to identify early in the morning. There is a lot of wait and see. I try my best not to dive in head first on market open on a Monday in case of reversal negative.

That being said the market looks quite bullish this morning. The scaling back of Trump Tariffs and the Dollar rolling over are bullish for equities. Lots of upgrades across the board this morning and lots of quality & speculative stuff gapping up hard. Will be waiting for market to settle down.

After Hours I’m Watching: NVDA (Key Note by CEO at CES Conference)

Top Pick Watchlists:

• Top Picks - November 2024

  • LONG: ALAB, HNST, SNOW, ESTC, RKLB, SMTC, URBN, PLTR, GAP, TSLA, SE, RDDT

• Top Picks - December 2024 

  • LONG: CRDO, MRVL, OKTA, FIVE, RBRK, AVGO

• Top Picks - January 2025 

  • LONG: CEG

Sources & Services I Use in my Trading:

• Finviz - Short Interest, Float, Articles, Fundamentals (Free)

• Benzinga Pro - News Source + News Squawk + Earnings Data (Paid)

• Tradingview - Charting & Scanning (Paid)

• Koyfin - Fundamental Data (Paid)

• EarningsWhispers - Earnings Calendar (Free)

• Tradersync - Trade Journal (Paid)

_{PS: There are many ways to trade stocks in play. It does not have to be the one that keeps going straight up and sometimes it doesn’t even have to be day one of the catalyst. Everyone must find a setup, timeframe and method that works for them. This list is supposed to educate on the criteria I use and the methods in which I find Stocks in Play. Yours may differ and that is completely okay.}